Market Roundup
•Canada Dec Imports 64.39B, 64.17B previous
•Canada Dec Trade Balance -0.31B , 1.10B forecast, 1.57B previous
•Canada Dec Exports 64.07B, 65.74B previous
• US Dec Trade Balance -62.20B, -62.00B forecast, -63.20B previous
• US Dec Exports 258.20B ,253.70B previous
• US Dec Imports 320.40B, 316.90B previous
• US Cushing Crude Oil Inventories -0.033M,-1.972M previous
• US Distillate Fuel Production -0.028M,-0.115M previous
• US Gasoline Inventories -3.146M ,0.140M forecast, 1.156M previous
• US Crude Oil Inventories 5.520M,1.700M forecast,1.234M previous
Looking Ahead Economic Data(GMT)
• 00:30 Australia Building Approvals (MoM) -9.5% forecast,1.6% previous
• 00:30 Australia Private House Approvals -0.5% forecast,-1.7% previous
•01:30 China Jan PPI (YoY) -2.6% forecast,-2.7% previous
•01:30 China Jan CPI (MoM) 0.4% forecast,0.1% previous
•01:30 China Jan CPI (YoY) -0.5% forecast,-0.3% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Wednesday as traders focus shifted to statements from U.S. Federal Reserve officials throughout the week, seeking insights into the potential interest rate trajectory for the year ahead. The focus also is likely to shift later to next week's inflation report for further clues on the timing of rate cuts.Two Fed officials said on Tuesday if the U.S. economy performs as expected, it could open the door to rate cuts. But the fight against inflation is .Strong U.S. economic data and hawkish remarks from Fed Chair Jerome Powell have dashed hopes for a rate cut in March and triggered traders to cut back bets of a May U.S. rate cut. The euro edged up 0.1% to $1.077 .Immediate resistance can be seen at 1.0803(( 38.2%fib), an upside break can trigger rise towards 1.0861 ( 50%fib).On the downside, immediate support is seen at 1.0722(23.6%fib), a break below could take the pair towards 1.0710(Lower BB).
GBP/USD: Sterling surged on Wednesday as data indicating growing home prices in Britain backed speculations that the Bank of England (BoE) would not lower interest rates anytime soon.British home prices grew 2.5% in the year to January, the highest annual growth rate in a year, according to data from mortgage provider Halifax, adding to early indications of recovery. n a sign that the BoE is in no rush to cut interest rates, Deputy Governor Sarah Breeden said she was now thinking about how long interest rates would need to stay at their current level, instead of whether they would need to rise further. Sterling rose 0.25% against the dollar to $1.2629, after sliding on Monday to an almost two-month low. Immediate resistance can be seen at 1.2639(Daily high), an upside break can trigger rise towards 1.2670(23.6%fib).On the downside, immediate support is seen at 1.2595(38.2%fib), a break below could take the pair towards 1.2528(50%fib).
USD/CAD: The Canadian dollar climbed versus its US counterpart on Wednesday as Wall Street rallied, but gains for the commodity-linked currency were limited as investors became wary of China's moves to aid its struggling economy. The removal of China's securities watchdog chief elicited a subdued response from markets, with investors waiting for more comprehensive actions to address the fundamental cause of the country's economic woes. Wall Street's major stock indexes rose, with the benchmark S&P 500 scaling a new record, while the U.S. dollar , opens new tab lost ground against a basket of major currencies. The loonie was trading 0.2% higher at 1.3465 to the greenback, or 74.27 U.S. cents, adding to its previous day's gains. It traded in a range of 1.3456 to 1.3493.Immediate resistance can be seen at 1.3523(23.6%fib), an upside break can trigger rise towards 1.3539 (Higher BB).On the downside, immediate support is seen at 1.3451 (38.2%fib), a break below could take the pair towards 1.3401 (50%fib).
USD/JPY: The dollar eased against the yen on Wednesday as investors assessed Federal Reserve rate-cut bets. In an interview at the weekend, Fed Chair Jerome Powell said the central bank could be "prudent" on the timing of rate cuts.The probability of a U.S. rate cut as early as May now stands at just 39%, when it was considered a done deal only a week ago. Fed Governors Adriana Kugler and Michelle Bowman, along with regional presidents Thomas Barkin and Susan Collins speak later on Wednesday. Futures imply around 122 basis points of easing for all of 2024, down from 145 basis points last week. Strong resistance can be seen at 149.03(23.6%fib),an upside break can trigger rise towards 149.63(Higher BB).On the downside, immediate support is seen 148.21 (Daily low)a break below could take the pair towards 147.50(50%fib).
Equities Recap
European shares were flat on Wednesday as the effect of easing government bond yields and gains in companies with upbeat earnings reports were offset by a slide in healthcare and energy stocks..
UK's benchmark FTSE 100 closed up by 0.62percent, Germany's Dax ended down by 0.65 percent, France’s CAC finished the day up by 0. 36 percent.
Wall Street's major stock indexes rose on Wednesday, with the benchmark S&P 500 registering a record closing high, as investors applauded overall strength in U.S. earnings and monitored Federal Reserve comments for clues on interest rates.
Dow Jones closed up by 0.40 percent, S&P 500 ended up by 0.82 percent, Nasdaq finished the day up by 0.95 percent.
Commodities Recap
Gold prices edged higher on Wednesday due to a slight pullback in the dollar, while investors looked forward to comments from Federal Reserve officials that may provide clues on the interest rate path this year.
Spot gold edged up 0.1% to $2,036.99 per ounce, as of 1016 ET (1516 GMT). U.S. gold futures also inched higher 0.1% to $2,053.10 per ounce.
Oil prices jumped for the third day in a row, supported by a larger-than-expected drop in US fuel supplies and escalating Middle East tensions.
Brent crude futures settled 62 cents higher, or 0.79% at $79.21 a barrel as of 2:40 pm ET (1940 GMT). U.S. West Texas Intermediate crude climbed 55 cents, or 0.75% to $73.86.
